In 2020, transaction volumes in both the primary and secondary sales market accounted for 9,982 units and 10,927 units respectively, edging out the new sales volume of 9,912 units and the resale total of 9,238 units in 2019. It is surprising that a year characterised by a pandemic-induced recession would perform better when compared against what would largely be considered as an ordinary one.
The rise in demand is partially spurred by Covid as we see an increased genuine need for young professionals both singles or couples to have their own private space instead of staying with their parents as Singapore entered into circuit breaker and adopted work from home measures - meaning more face time with extended family members at home.
Singapore's residential enbloc land sales market saw a bit of action in the last quarter of 2020. Listed property developer Roxy-Pacific Holdings acquired 15 terraced houses in the Guillemard area for $93 million in November 2020. This makes it the largest collective sale in 2020 and brings the total number of reported collective sales this year to four, which is almost similar to 2019.
The first government land sales (GLS) tender last year at Tanah Merah Kechil Link after the lifting of the “circuit breaker” drew a whopping 15 bidders and a top bid of $930 psf per plot ratio (ppr). It was awarded to MCC Land on Nov 13 2020.
Most mass market projects launched in 2018 & 2019 have moved more than 60% of their units to date. This clearly shows the strong underlying de- mand for properties as people aspire to have a different lifestyle.
Kiwi Lim from Huttons Asia suggest that if the government does not release more land for Government Land Sales (GLS) for mass market condos, the supply for mass market new launch condo projects next year will offer very limited choices leading to higher resale transactions and a rise in resale prices.